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High Court affirms Tribunal's penalty reduction to 25% for timely payment. Appeal dismissed. The High Court upheld the Customs, Excise and Service Tax Appellate Tribunal's decision to reduce the penalty to 25% of the duty amount if paid within 30 ...
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High Court affirms Tribunal's penalty reduction to 25% for timely payment. Appeal dismissed.
The High Court upheld the Customs, Excise and Service Tax Appellate Tribunal's decision to reduce the penalty to 25% of the duty amount if paid within 30 days, despite the appellant's arguments about the non-speaking nature of the Tribunal's order and the timing of payment. The appeal was dismissed as no substantial question of law was raised, with the Court citing alignment with a previous High Court judgment as the basis for its decision.
Issues: Challenge to order of Customs, Excise and Service Tax Appellate Tribunal regarding reduction of penalty under Section 11AC of the Central Excise Act, 1944.
Analysis: The appellant revenue contested the order of the Tribunal which directed the reduction of penalty to 25% of the duty amount if payment was made within 30 days. The appellant argued that the Tribunal's order was non-speaking as no contention was raised by the respondent regarding the penalty amount. The appellant highlighted that the duty, interest, and penalty were not paid within 30 days, and thus, the benefit of reduced penalty should not have been granted. However, the Tribunal's decision was in line with a previous judgment of the High Court, and it was deemed legally sound, leading to the dismissal of the appeal.
Conclusion: The High Court dismissed the appeal as there was no substantial question of law raised. The Tribunal's decision to reduce the penalty to 25% of the duty amount if payment was made within 30 days was upheld, citing alignment with a previous High Court judgment. The appellant's argument regarding the non-speaking nature of the Tribunal's order and the absence of a raised contention on penalty amount were not deemed sufficient to overturn the Tribunal's decision.
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